As young buyers are increasingly being priced out of the detached house market in Canadian cities, they've been turning toward condo purchases. This has been pushing up prices ever higher for these units. (Mark Blinch-Reuters)

Canada housing: now condo prices are going up

The cost of housing has been listed in a recent national survey as a top concern for Canadians, and a major issue in the upcoming general election.

The huge increase in house prices across the country has pushed a great many young people people out of the house market. Thosein seeking to enter the housing market have been turning to condos.

A new study by national realtor Royal-LePage shows that in the first few months of this year alone condo prices have been shooting up substantially in many of Canada’s major cities.

Although not the most expensive, the region around Canada’s national capital, Ottawa, saw the greatest increase in prices year over year at 17.9 per cent to a median of $395 per square foot, while Ottawa proper saw a rise of 4.2 % sq/ft to $444 sq/ft. The average size of a condo in the area is about 895 sq.ft (272 sq/m).

The new study shows that the once less expensive home option of condo ownership is now becoming ever more expensive as prices have risen dramatically in several Canadian cities in just the first seven months of this year (CBC-Ottawa)

In Canada’s largest city, Toronto, condo prices have risen 8.5 per cent to $839 per square foot, while in the surrounding region the increase was 9.1 per cent to an average cost of $743 per sq/ft.

With an average condo size of about 770 sq/ft, condo prices are in the $600,000 range as a rough average.

A quick search of condos for sales shows actual prices ranging from around $500,000, to well over $1 million dollars

Montreal proper saw price increases for condos up 7.9 percent, and 10.3 per cent in the surrounding areas on Montreal island.

“Baby boomers looking for smaller units, millennials increasing their purchasing power, and more foreign buyers contributed to a hike in condo prices and demand in the past three years,” explained Maxime Tardif, real estate broker at Royal LePage Altitude. “Available land is limited on the island; builders and developers are making every square foot count. As a result, more high-end, spacious units are being constructed in the suburbs, particularly near transit stations.

Vancouver’s prices actually went down, but it remains the most expensive market in Canada. In the city itself the median price per square foot for a condo (average size 780 sq/ft) is $1,044.

Calgary Alberta is among the least expensive major cities where the average condo size is about 850 sq/ft, costs are on average $313 sq/ft.

Additional information-sources

Categories: Economy, Society
Tags: , , , , ,

Do you want to report an error or a typo? Click here!

For reasons beyond our control, and for an undetermined period of time, our comment section is now closed. However, our social networks remain open to your contributions.